Optus partnered with SpaceX to provide the first satellite direct-to-handset services in Australia, but its plans have been pushed back.
US regulatory hurdles have delayed the launch ofOptus’s much-hyped partnership with Elon Musk’s Starlinkto provide the first satellite direct-to-handset services to Australians.
The nation’s second-biggest telco has quietly pushed back its plans to launch the Starlink service, which was initially expected to debut last year.
Some telco insiders told The Australian the delay concerned the spectrum Optus had been allocated, which was at the limits of what Starlink could support without launching new satellites.
Starlink’s current fleet of 400 to 500 satellites lacks the density to provide a voice-capable service in Australia. Optus has been allocated spectrum near the 2600MHz band for its service, which is towards the upper limit of what’s technically possible with Starlink.
For example, US telco T-Mobile, which is using 1900MHz, is not voice-enabled yet because of these reliability concerns.
The Australian understands that Optus delay was prompted after Starlink’s owner SpaceX engaged with the US regulator about the conditions for conducting testing in Australia. SpaceX needs approval from the US Federal Communications Authority to operate its satellites and allocate spectrum and licences.
Optus initially expected to offer SMS capability with Starlink in late 2024, with voice and data to follow later this year. An Optus spokeswoman said the telco had been working with SpaceX over the past 12 months to expand coverage across Australia.
“Optus is working with Starlink, and will determine timelines that enable the best possible experience for customers,” the spokeswoman said.
“We launched satellite internet for business last year, and we continue to work together on cutting-edge direct-to-mobile technology which has previously not been possible in Australia. We continue to be committed to using Low Earth Orbit satellite direct-to-mobile technology to connect our customers.”
European leadersare reportedly scramblingto break their dependency on Mr Musk’s satellite service after the billionaire and close adviser to Donald Trump said “Ukraine’s entire front line would collapse” if he switched off Starlink.
“If SpaceX proves to be an unreliable provider we will be forced to look for other suppliers,” Polish Foreign Minister Radek Sikorski wrote on X last month.
Mr Musk fired back: “Be quiet, small man. You pay a tiny fraction of the cost. And there is no substitute for Starlink.”
Telstra is also working with Starlink but is yet to pin down a vendor.
Under its Starlink deal, Optus said it was working to provide coverage to “100 per cent of Australia”. This included expanding the reach of customers’ mobile connectivity to include the 60 per cent of Australia’s land mass which currently has no mobile coverage.
Australia’s main telcoshave been signing deals with US satellite providers to expand coverage.Even government-owned NBN Cois looking to provide wholesale LEO satellite services after sales of itsmuch-maligned Sky Muster offeringfell.
Vodafone owner TPG Telecom has a non-exclusive agreement with Lynk Global that will connect standard mobile phones to Lynk’s constellation of LEO satellites, closing coverage gaps in rural and remote parts of the country.
Telstra is “exploring and testing” what is known as direct to handset satellite technology, announcing last year it was also working with Lynk, Starlink and others.
Chief executive Vicki Brady said last year the company was hedging its bets on the “still evolving” technology.
“Obviously there’s a lot of innovation happening in the LEO satellite environment at the moment, and it’s exciting to see. So we’re working with a range of satellite providers,” Ms Brady said.
“It’s fair to say the technology is still evolving. And so there’s no definitive timelines yet, but I think incredibly important we’re in that space, we’re working with OneWeb, we’re working with Starlink when it comes to our broadband services, and we’ve got an enterprise product in market.”
In February, NBN Co boss Ellie Sweeney said the telco was “well progressed” on a request for information to develop a wholesale LEO service before Sky Muster’s satellites are decommissioned early next decade. It has since reportedly selected Starlink rival, Amazon’s Kuiper service.
This content originally appeared on The Australian.
